(13 years, 5 months ago)
Commons ChamberThere is a lot of due diligence to be done so that we do not waste taxpayers’ money.
Opposition Members might agree that we have to be fair to employers and to the work force. Liberal Democrats seek a balance to ensure that staff can achieve their full potential and have a home life as well as a work life. Unlike some in the Chamber, we are not in the pockets of the unions, but seek to work with the unions and with management to achieve fair outcomes and fair rewards. We will extend the right to request flexible working, and entitlement to parental leave will be shared. All parties bemoan the fact that we often lose female talent when the babies come along; now there will be no point in employers discriminating in recruitment against women of child-bearing age. Both men and women will be entitled to parental leave. That is one small step for equality.
However, Liberal Democrats would say that in some areas the pendulum has swung too far in the direction of the employee. Some employees take advantage of, and try to play, the employment tribunal system, which has become clogged up with cases waiting to be heard, costing time and money and causing stress for all. New legislation will put a greater emphasis on conciliation and give employers longer to give underperforming employees a chance, before the spectre of the unfair dismissal tribunal looms.
Clearing away unnecessary regulation is a big job, and we have already started. We will reform the competition regime by creating a powerful new body to enable the speedier prosecution of anti-competitive behaviour. We are also taking action on executive pay. If there is one thing that really bugs the British worker, it is seeing overpaid executives getting even more for even poorer performance, so we will give shareholders the power to exercise greater control over executive pay through binding votes.
I am sorry, but I cannot give way again.
I think that all hon. Members are looking forward to the Groceries Code Adjudicator Bill, which at last offers some fairness for producers at the mercy of the powerful supermarkets. Then there is the green investment bank. It has £3 billion at its disposal for investment, but Liberal Democrats would like it to have greater powers to act like a real bank, investing and borrowing as well as lending, and we are working on that.
All that will be to no avail if we cannot sort out the biggest problem still faced by business today: access to finance. Project Merlin has had some success, with £195 billion lent by banks to business, but we need more. Liberal Democrats will be doing all we can on policies to widen the range of banks and lower the almost insurmountable barriers to entry for new banks. We want to introduce more peer-to-peer lending, such as the funding circle, and would like to examine the feasibility of community banks.
Perhaps the most important piece of legislation of all is one that will stop a repetition of the banking crisis that resulted in the house of cards that the previous Government allowed the finance industry to build tumbling down. The Business Secretary foresaw it all: he warned Labour that light-touch regulation, over-optimistic ratios, complex financial instruments that few could understand, banks that were too big to fail and banks whose casino and retail arms were wedded would bring disaster, but not even he could have imagined the scale of the economic crisis that gripped the UK, America, Europe and large parts of the world and made them much worse off. The crisis is taking longer to sort out than anyone hoped.
We need only look across the continent at Greece, Spain and Italy to see what would have happened had we not gripped the situation there and then. Too far, too fast? It would have been “too little too late” if the Labour party had had its way. We would be paying treble the current interest rates, with much higher unemployment and much higher bond yields, as those countries have today. We are sorting it. The little blue and yellow tractor is taking the strain and pulling us out of the mire that the Labour party helped to create.
I want to speak about my constituents’ priorities, which are unfortunately not addressed in the Queen’s Speech.
Nottingham city council and NHS Nottingham City jointly commission the Nottingham citizens survey, an annual survey of city residents which gathers views on a variety of subjects including the things that make people believe that Nottingham is a good place in which to live—such as its excellent public transport system and NHS services—and the improvements that are most needed, which include more crime-cutting, the provision of more activities for teenagers, and better job prospects for residents.
It is interesting to note that job creation made it into the top five items only this year, but it is hardly surprising. Thanks to the Government’s failed economic strategy, the UK is now experiencing a double-dip recession. More than 2.6 million people are out of work, 3,500 of my constituents are stuck on out-of-work benefits, and long-term youth unemployment in my constituency has risen by 133% in the last 12 months. Sadly, the Government will not address those priorities over the coming year.
At a time when my constituents want to feel safer in their homes and on the streets, the Government are continuing to cut funding for our police force. Last week, like many other Members, I met police officers who had come to protest about the Government’s plans. All those officers—from neighbourhood policing teams, from our city centre response team, and from intelligence and surveillance units—had front-line roles, and they had a simple message to deliver. They described the cuts as catastrophic, and told me that they no longer had the resources with which to do their job properly. How can our police forces continue to cut crime if they do not have the resources that they need?
Opportunities for young people are also a cause for concern among my constituents. That is not surprising, given cuts in youth services, the loss of work experience opportunities and careers guidance, the scrapping of the education maintenance allowance, the tripling of tuition fees, the undermining of vocational qualifications, and the sharp rise in youth unemployment. What hope does the Queen’s Speech offer young people in my constituency? None.
I recently attended a round table at Nottingham Forest football club with business leaders and representatives of the voluntary sector and local councils to discuss skills and opportunities for young people. While there was a real collective will to work together in our city to give young people a hand up, there was also frustration about the Government’s failure to provide the support that would enable them to get on, help them to gain the skills that they needed, and create the economic conditions that would provide jobs for them to do.
As for the need to boost business and create jobs, what does the Queen’s Speech offer? Nothing. When the Government talk of reforming employment rights, they mean making it easier to sack people. At a time when families are already facing a cost-of-living crisis and consumer confidence is at its lowest level for a generation, creating further insecurity is exactly the wrong thing to do. It was not the UK’s system of employment law that sent our economy into recession; it was the Government’s decision to cut public spending too far and too fast. It is this Government’s choices that have landed hundreds of people in my constituency on the dole; it has been this Government’s choice to freeze wages, and now to threaten cuts to real incomes in the public sector by hiking up pension contributions and introducing regional pay; and it is this Government who have raised VAT to 20%, allowed train companies to hike up rail fares and cut support for the bus industry, leading to fare rises, all taking money out of my constituents’ pockets and undermining the retail sector, which is so important to Nottingham’s local economy.
So what have the Government done? Well, Nottingham has an enterprise zone, but it has still to deliver a single new job. We have yet to receive a penny from the regional growth fund, and the Government have scrapped our successful regional development agency. No wonder businesses have slammed the Queen’s Speech for failing to offer an industrial strategy or real measures to boost growth, and we are still waiting for the Government’s previous measures to make the slightest bit of difference.
So here are some questions that people in Nottingham would like the Minister to answer. How will the Government’s programmes support our city’s economic growth plan? How will they ensure that young people in Nottingham have real opportunities to obtain skills and jobs? How will the Government help boost investment in our city’s vital retail sector? How will they ensure our enterprise zone actually delivers new jobs? How will they support the growth sectors in our city’s economy—health and life sciences, digital content and low carbon—to help us attract high-skill jobs in the future? Will the Minister’s Government support investment in the midland main line for both line speed improvements and electrification? Will he ensure that Nottingham benefits from the improved connectivity offered by high-speed rail? Will he support the development of high-speed broadband, which is needed to boost our digital media sector? Finally, will he listen to the views of Nottingham citizens, and prioritise the needs of the many people I represent who are suffering the effects of a recession made in Downing street and this Government’s other disastrous policy choices?
(13 years, 6 months ago)
Commons ChamberThe Government have taken great action to increase tax transparency, and on ensuring that there is more of an exchange of information between jurisdictions. We have taken action to prevent Switzerland, for example, being used as a place to facilitate tax evasion. In addition, Her Majesty’s Revenue and Customs provides considerable support to developing countries to improve their capability and capacity to collect tax revenues, which are very important.
T4. Ramtech Electronics is a small business in my constituency that supplies wireless products to the static caravan industry. Tony Strickland, national key account manager, says that the effect of the Government’s decision to put VAT on caravans will be “catastrophic” for the industry and that it will“undoubtedly result in job losses.”Why does the Chancellor think that a tax cut for millionaires is more important than my constituents’ jobs?
(13 years, 9 months ago)
Commons Chamber
Danny Alexander
I agree with my hon. Friend: the apprenticeship programme is a vital part of tackling youth unemployment and lifting the skills in our work force. It is a real shame that the Opposition now seem to be opposing the extra investment in apprenticeships that we have made.
(13 years, 10 months ago)
Commons Chamber
Danny Alexander
I entirely agree. That is one of the abiding reasons why both the hon. Lady’s party and mine have sought to reform public service pensions for many years. As a result of the inequities in the current system, the contributions of hard-pressed low-income workers subsidise the pensions of the wealthiest public service workers. The new deals will mean that that will no longer happen.
Large increases in pension contributions combined with a continuing pay freeze will lead to a severe squeeze on living standards for nurses, teachers and other public service workers. What impact will that squeeze have on the wider economy, particularly in regions where there is a high proportion of public service employment?
Danny Alexander
There is a squeeze on living standards and, indeed, on our economy for a combination of reasons, including the crisis in the eurozone and the catastrophic mess that the hon. Lady’s party made of the economy. I think she should start by admitting that.
(13 years, 10 months ago)
Commons Chamber
Mr Osborne
My hon. Friend is indeed a powerful champion of micro-businesses. She has spoken to me about them on a number of occasions in the past year. We have set out a number of measures that will help such businesses, including the rate relief holiday, the seed investment scheme and the support for innovation. We are consulting and having a call for evidence specifically on compensated no-fault dismissal for firms of fewer than 10 employees.
Why are hard-working families on tax credits, low-paid public sector workers and the thousands of young people in my city with no job paying the price of the Chancellor’s economic failure while he lets bankers keep their bonuses?
Mr Osborne
It was the Labour Government who let the City explode. They allowed that to happen when the shadow Chancellor was the City Minister. They had 13 years to regulate the City and I suspect that on not one occasion did the hon. Lady write to either Tony Blair or the last Prime Minister calling for that regulation. The Labour party presided over the biggest financial crisis in our country’s history. We are properly regulating the banks and introducing ring-fencing. We have brought in a permanent bank tax and transparency in bankers’ pay. None of those things existed in the 13 years of Labour Government.
(13 years, 11 months ago)
Commons ChamberDoes the hon. Gentleman agree that one of the industries that will be hardest hit by the increases in fuel duty is the bus industry? Does he agree that it will be hit not only by two increases in duty next year, but by the Government’s decision to cut 20% from the bus service operators grant? What impact does he think that will have on passengers?
I thank the hon. Lady for her intervention, but I am staggered by the collective amnesia on the Opposition Benches. I will gladly give way again if she can name a single time in all the years her party was in government when it cut fuel taxes.
My understanding is that on numerous occasions we decided not to press ahead with increases in fuel duty, and that had an enormous impact.
That point will not be lost on the House.
Something else that will not be lost on the House is the fact that this coalition Government took the bold steps to reduce fuel duty, to bring in the fair fuel stabiliser and to look at what we can do to help rural businesses. That is hugely important.
Andrew Bingham
My hon. Friend makes an excellent point, as he always does.
High Peak businesses suffer from rurality. We are midway between Sheffield, Manchester and Derby. The distances from our businesses’ customers and their suppliers mean that bringing goods in or sending them out costs more. My big concern is that as increases in fuel costs are borne more and more by local businesses, they will eventually say, “Enough is enough” and move out of the countryside into urban areas, further exacerbating the difference between the rural and urban economies.
We must remember that families are affected too. Although I understand that this debate is predominantly about fuel costs, I have to mention the increased energy costs that families are having to bear at the moment. I venture to suggest that High Peak is probably the coldest constituency in England. We have had a cricket match snowed off in Buxton in June, so we feel the winters, which are deeper and longer. That puts a further burden on family budgets.
Other Members have made the point that increased car use is required in rural areas. The proportion of households without a car in London is 43%, while in metropolitan areas it is 31%. In rural areas, only 10% of households do not have a motor vehicle. The reason is—
Andrew Bingham
No, I am going to move on, if the hon. Lady does not mind, because we are short of time. Also, I note what the former occupant of the Chair said about those making interventions not being called to speak, and I would not like to deprive the House of her speech later on.
When public transport links are not as good, a motor vehicle becomes a crucial part of family life. Someone spoke earlier about four-wheel drive vehicles. I understand the image they have as Chelsea tractors, but we should remember that sometimes four-wheel drive vehicles are vital in rural areas, as they are the only way that people can get about. As for public transport in my area, anyone who wanted to travel between the two major towns of Glossop and Buxton by bus would need to take a meandering route through New Mills, Whaley Bridge and Furness Vale. A car is the best way.
I believe that one day vehicle movements will perhaps fall slightly as communications improve, but broadband in rural areas is not as fast as it is in urban areas. That reduces people’s ability to work from home, which means that they have to travel to work, again putting more pressures on budgets. Cities and urban areas have faster broadband, better public transport and, more often than not, a better climate. In High Peak it is colder for longer, we have fewer public transport options and families and businesses need to travel further.
Given that I still have about one minute, I shall mention one further aspect. Local mountain rescue teams are staffed by volunteers who use vehicles, but also pay duty. I give hon. Members the image of a cold, snowy mountain in High Peak, with a sheep in one field and a human being in another, and a farmer going to save the sheep and a mountain rescue team going to rescue the human being. Which one pays less for fuel? The farmer will quite rightly use red diesel and pay no duty; the mountain rescue team, as a not-for-profit group of volunteers saving a human life, is faced with paying all the duty on that fuel. However, that is a debate for another day. I put my hon. Friend the Minister on notice that I keep putting in for a Westminster Hall debate on the issue. I hope that one day I may get lucky.
To sum up, rural areas face the challenges of using more fuel, and in High Peak we pay more.
(13 years, 11 months ago)
Commons Chamber
Danny Alexander
I do indeed hope that the trade unions will examine the proposals carefully. I was encouraged when they said that they would at our meeting this morning. Of course trade unions need to take time to understand the impact of the changes, but I hope that on reflection they will accept that the new offer constitutes a generous enhancement from the Government, and a fair and reasonable basis on which to reach agreement in the scheme-by-scheme talks that will take place during the next couple of months.
The Chief Secretary said he believed that pension changes should be sustainable and fair. Will he confirm that he intends additional contributions to the local government pension scheme—which is a funded scheme—by scheme members to go straight to the Treasury rather than into their pension fund?
(14 years, 3 months ago)
Commons ChamberIt is fortunate that today’s debate follows yesterday’s ministerial statement accompanying the publication of a new equality impact assessment of courses in English for speakers of other languages. Like my hon. Friend the Member for Leicester South (Jon Ashworth), I welcome its publication and I am pleased that the Minister has asked the Association of Colleges, together with Lord Boswell and Baroness Sharp, to advise on how funds can be targeted. However, I am sure that I am not alone in thinking that this is too little, too late.
Colleges have already planned their provision for September. ESOL learners who are no longer eligible for fee remission will have already decided whether they can afford to enrol on courses or continue their studies, and ESOL tutors will have made plans for the future. My first questions to the Minister are as follows, therefore: when does he expect to receive the report that he has commissioned, and why does he not delay these changes to allow him time to respond?
Not all Members will have had the opportunity to read the equality impact assessment, so it may be useful to highlight some of the key findings. Last year, there were 187,000 adult ESOL students, 68.1% of whom were female. The vast majority of them came from black or ethnic minorities. Some 42% of women enrolling on ESOL courses last year received fee remission because they were in receipt of income-related benefits. A further 2% of women and 7% of men were asylum seekers. If those learners were enrolling this year, they would have to pay hundreds of pounds towards their course costs. That is why 75% of colleges have scaled back ESOL provision. In the most basic terms, people on low incomes will no longer be able to afford to learn English. BEGIN —Basic Educational Guidance in Nottinghamshire—published its own equality impact assessment in April. It found that 73% of adult ESOL clients were from black and ethnic minorities, 83% were not on active benefits, and 84% could not afford new or higher fees.
The Government’s report summarises the evidence they received, stating that those required to contribute from August 2011 would be unable to afford to take up ESOL provision, that people will be increasingly reliant on their own families and communities to interpret for them, and that this change would deter people from accessing public services. It also stated that people would be unable to obtain work or make progress in the workplace, that parents would be unable to support their children’s learning at school, and that more would need to be spent on translation services. Members should note that the Government did not engage in an open public consultation, and by the report’s own admission it is “speculative”.
I therefore have a number of questions. The Department says that public funding should not substitute for employer investment and I agree, but what measures are the Government taking to ensure that employers do contribute to the cost of training for their workplace? What measures is the Minister taking to ensure that women learners who care for small children or dependants are not penalised for their caring responsibilities? The document also refers to the single learner support fund, but how much is available, and how much of this will be available to ESOL students? The report states that informal learning opportunities are expected to be available for older Asian learners, but what evidence supports this view?
The needs of asylum seekers do not appear to be addressed in any meaningful way, despite significant concern expressed by the Refugee Council. I know from my own discussions in Nottingham that it is vital that those who have been subject to persecution are not isolated and excluded due to lack of English. How can asylum seekers be expected to cover half their course fees when they are unable to work?
I would like to thank the Minister for Further Education, Skills and Lifelong Learning for the constructive way he has kept colleagues on both sides of the House informed about this matter, but I have to say that, despite his good intentions, I fear his Government have fundamentally misunderstood the importance of ESOL to the communities we represent, and I urge him to think again.
(14 years, 4 months ago)
Commons Chamber
Mr Osborne
The entire economic record of the previous Government was negligent, which is why no one is going to trust Labour with the economy again.
I hear what the Chancellor says, but just before the collapse of Northern Rock in 2007 did he not write in The Times that his party would match Labour’s spending totals? Why is he now pretending that did not happen?
Mr Osborne
I have already been asked that question three times, and I have answered it, explaining that—[Interruption.] Well, I will repeat it. We fought the general election in 2005 arguing that Labour was borrowing too much. We came off Labour’s spending plans in 2008, in the approach to the last general election, and thank God we did, because it gave us the mandate to take the difficult decisions we have had to take.
It is a pleasure to follow the hon. Member for Airdrie and Shotts (Pamela Nash), who spoke with considerable passion about the plight of some of her constituents. However, I am sure she will recognise that the best way of tackling the poverty that she described is by getting our economy working more effectively, incentivising people who want to create wealth and spreading more jobs. That is the way to tackle the problems that she articulated.
On that note, I congratulate the Chancellor of the Exchequer and the Treasury team on sticking with the tough decisions that will rebuild our economy and prevent it from spiralling further into debt, and in so doing lay the foundations for future growth. We must stick with our plan. There is no need for a plan B.
Let us get this correct: we inherited an economy built on credit and public spending. That is not a climate that will encourage wealth creation. We cannot keep taxing private enterprise in order to fund an expanding public sector. We need to incentivise our wealth creators and set the economy free. It is clear from recent economic figures that the economic fundamentals are strengthening. Indeed, John Cridland, the director general of the CBI, said this weekend that we are well into recovery, even though it does not quite feel that way.
I understand what the hon. Lady is saying, but does she not share our concern that although we are supposed to be in recovery, the growth figures keep being downgraded?
I was just getting to the explanation for that, which is the one that my right hon. Friend the Chancellor of the Exchequer gave at the Mansion House last week. He dissected the growth figures, which showed that although financial services were contracting, in the rest of the economy we were in a period of growth. We need to rebalance our economy, and to take it away from a large financial services sector and more towards manufacturing and other sectors.
I shall continue, because time is brief and many colleagues want to contribute, by bringing the debate to life with some real-life examples, and by drawing the attention of the House to some areas where we are making considerable progress. First, there is a genuine improvement in manufacturing—the Government amendment mentions an increase in activity of 4.2%. I have the privilege to represent a considerable amount of manufacturing industry, which is situated particularly in the west Thurrock area and in Purfleet. Among the large operations in my constituency is a Unilever plant that manufactures, among other things, Hellmann’s mayonnaise, Flora margarine and other spreads. The company very recently relocated its manufacturing operation for jars of Hellmann’s mayonnaise from the Czech Republic to Purfleet. Why? Because it was more cost effective. Do not let it be said that the UK cannot compete internationally for manufacturing presence.
I am glad to see that Opposition Members are focused on the topic of today’s debate.
As I was saying, the manufacturing recovery has softened slightly over the last month or two, but it is still strongly up on where it was a year ago. There is a lot to be done, but I would like now to highlight a few things that this Government have done in my constituency, and on which I am working with my constituents.
No, we have had enough of the hon. Lady’s discussion of the past.
I welcome this Government’s commitment to redouble the Swindon-to-Kemble line, which will be an important infrastructure improvement for our railways. I welcome the transfer of assets from the former regional development agency to our city, which will make a difference to our regeneration. I also welcome the funding that the Secretary of State for Education has given for a new-build Gloucester academy, which will help some of our young in their education. I am proud to have worked with my constituents to organise the Gloucestershire apprenticeship fair, the women for engineering seminar and, last week, the Barton jobs fair, alongside Linking Communities and Black South West Network, from which some of our young unemployed black and minority ethnic constituents have found new jobs. There are jobs available if only we can help our constituents to find them. All of us in this fragile situation have options.
Charlie Elphicke
No.
We already have a situation in which our debt interest costs us £49 billion a year. We cannot afford to carry on like this. We need to get the nation’s books back into balance, and the country back under control. The Government are doing exactly that.
Let us look at the detail of the Opposition’s motion. It refers to 25,000 new affordable homes, but the reality is that in the five years of the previous Conservative Government, 34,786 affordable housing units were built on average each year, compared with 24,560 under the last Labour Government. That is a 30% fall in the amount of affordable housing built. The Labour party should not be proud of such a record, and no one reading the motion before the House can have any trust in the Labour party on the issue. The motion refers to jobs, which Labour destroyed during the latter part of their period in office.
The hon. Gentleman is fond of statistics, so is he not concerned that while in 2010 there were 3.9 jobseekers for every vacancy in his constituency, that has risen to 8.1? What does he have to say to that?
Charlie Elphicke
Employment has gone up in my constituency, and unemployment has been falling, which is welcome. We are going in the right direction: across the nation, there are 520,000 new private sector jobs, while public sector employment has fallen by 143,000, so we see a net rise. The most recently announced figures show unemployment falling sharply by 88,000.
(14 years, 7 months ago)
Commons ChamberI think I was the first person to ask that in this debate. Of course, we have a clear economic message that runs counter to the posturing successfully used by the parties in government to suggest that there is a need to cut fast and deeply. Our message is that there is no need for such cuts. Three tools are at our disposal to manage our way out of the economic challenge: growth, taxes and service reductions. The Government are using only taxes and service reductions, at a heinous rate, when we should have a policy for growth. Their policy is for the opposite of growth.
Let me draw attention to the headlines sought by the Conservative party as long ago as 2008: “Tories vow to slash fuel duty”, from the Press Association on 6 July 2008; and “Tory tax cut to beat hike in fuel” from The Sun on 7 July 2008. In a sense, since 2008 the Conservative party has made promises to the British people on fuel duties that it has singularly failed to meet in government.
Does my hon. Friend recall a promise being made before the election to increase VAT to 20%?
I recall one of the parties in government saying to the other party that it was telling an untruth when it said that it would not put up VAT. It turns out that both parties were planning to put up VAT all the while.
People face real difficulties because of the situation in the middle east, the fuel duty rises that the Government have already imposed and the burden of putting VAT up, totally unacceptably, to an all-time high. That favourite Tory tax is now at 20% and that is causing real difficulties for people—we need to listen to them.